Minutes 03/09/2004 - Laserfiche WebLink

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March 9, 2004 ~ Since both the Supplemental Plan and the Fire and Police Plan are frozen to new entrants, covered payroll under the plans will decrease over time (eventually to zero). The amortization of the unfunded accrued liability is calculated in the actuarial valuation as a fixed dollar amount. This fixed dollar amount will be expressed as a percentage of an ever decreasing payroll, eventually reaching the point where there is no longer any payroll upon which to base the calculation. > The current Code language provides for an amortization of the unfunded accrued liability over a new 40-year period at every actuarial valuation date. The unfunded liability would never become fully funded if this methodology continued. · Therefore, we are proposing amendments to the Code that would (a) change the calculation of the accrued liability contribution from a percentage of covered pay to a fixed dollar amount, and (b) amortize the unfunded liability fully by the year 2037. · A corresponding change is not necessary for the normal contribution rate since it relates only to currently covered active employees rather than to total plan liabilities. · The City's Retirement Board met on February 12, 2004 and approved the recommendation. Financial Impact: · This change in funding computation will improve the financial condition of the two retirement systems and more closely equates investment earnings and contributions to anticipated benefit payment streams. This approach is more conservative than the currently employed method. Leroy Jones, 3008 Bertram Street, Chesapeake, spoke on a code change that would include fire and police members of the 321 Retirement System having the same options as City Employees in the Virginia Retirement System (VRS) to purchase previous service years. Motion by Mr. Whitehurst, and seconded by Mr. Benn, to adopt the following ordinance, and was adopted by the following vote: "ORDINANCE TO AMEND CHAPTER 30 OF THE CODE OF THE CITY OF PORTSMOUTH, VIRGINIA (1988) BY AMENDING SECTIONS 30-32 AND 30-157 THEREOF PERTAINING TO THE ACTUARIAL COMPUTATION METHOD FOR CONTRIBUTIONS TO THE PORTSMOUTH SUPPLEMENTAL RETIREMENT SYSTEM AND THE PORTSMOUTH FIRE AND POLICE RETIREMENT SYSTEM." Ayes: Benn, Griffin, Pitts, Randall, Whitehurst, Holley Nays: None 04 - 96 - Adoption of an ordinance to appropriate $140,000 in the Golf Fund to pay for the cost of improvements at the Bide-A-Wee Golf Course complex. A walking bridge and cart damaged by Hurricane Isabel will be replaced, and kitchen equipment needed for hosting events will be acquired for the Pavilion and will ultimately increase revenues to the Golf Fund. Recommendation: · Adoption of an ordinance to appropriate $140,000 in the Golf Fund to pay for the cost of improvements to the Bide-A-Wee Golf Course complex. Purpose and Need: · A cart and walking bridge will replace the existing bridge and cart that was damaged by Hurricane Isabel.